News / National
Zimbabwe settles $30 million debt owed to Zambia
09 May 2014 at 07:13hrs | Views
Zimbabwe has settled the outstanding $30 million owed to Zambia as principal debt accrued through the acquisition of power generation equipment under the defunct Central African Power Corporation (CAPCO) which the two countries co-owned.
Zimbabwe owed Zambia $70 million after acquiring power generation assets when CAPCO was dissolved to form the Zambezi River Authority(ZRA).
The two countries agreed that the debt be settled in installments by not later than April 30, 2014.
Mines, Energy and Water Development Minister Christopher Yaluma said the debt had been settled in full as agreed upon by the two Governments.
Yaluma however, said interest of $114 million accrued on the debt but both Governments have reached a mutual agreement that this should be settled through a devised settlement plan.
"The Government of Zimbabwe has settled the remaining $30 million, completing the $70 million owed to Zambia after the dissolution of CAPCO which was reconstituted as the Zambezi River Authority," Yaluma said.
Zimbabwe owed Zambia $70 million after acquiring power generation assets when CAPCO was dissolved to form the Zambezi River Authority(ZRA).
The two countries agreed that the debt be settled in installments by not later than April 30, 2014.
Yaluma however, said interest of $114 million accrued on the debt but both Governments have reached a mutual agreement that this should be settled through a devised settlement plan.
"The Government of Zimbabwe has settled the remaining $30 million, completing the $70 million owed to Zambia after the dissolution of CAPCO which was reconstituted as the Zambezi River Authority," Yaluma said.
Source - Times of Zambia
